4 OPERATIONS & PROJECT MANAGEMENT - 4.2 Operations Planning Flashcards
Define Operations Planning
The input resources make products that will meet the customer needs
Define CAD (Computer Aided Design)
Computer programs are used to generate 2D and 3D graphical representations of physical objects
Define CAM (Computer Aided Manufacturing)
Computer programs are used to control machines and tools that are related to manufacturing components or completed products
Define Operational Flexibility
The ability to vary the level of production and the range of products following changes in demand
Define Process Innovation
A new and improved production method / service delivery method
Define Job Production
One-off production with special and unique designs. One product should be finished before the next.
Define Batch Production
A limited amount of identical items are produced in stages. Each group goes under a production stage before it moves to the next. The stages are distinct
Define Flow Production
Items are produced in a continually moving process. Each item moves through the assembly line independently
Define Mass Customisation
Flexible computer aided production used to produce goods according to customer requirements at mass-production cost levels
Define Optimal Location
Where qualitative and quantitative factors are balanced
Define Economies of Scale
A reduction in a firm’s unit costs resulting from an increase in the scale of operation
What are the different types of Economies of Scale?
- Purchasing Economies
- Technical Economies
- Financial Economies
- Marketing Economies
- Managerial Economies
Define Purchasing Economies
Where suppliers offer great discounts for large orders
Define Technical Economies
Large firms use technology to reduce unit costs
Define Financial Economies
Banks and other lending companies often show preference to larger businesses that have a track record
